Towards a Balanced Quota Reform at the IMF

The global financial system is confronting a multitude of challenges, from uncertain growth and widespread debt to climate risks and beyond. The International Monetary Fund (IMF) has a vital role to play as the anchor of the global financial safety net (GFSN). Since the G20 has called for a “strong, quota- based and adequately resourced IMF”1 as the anchor of the GFSN, it is imperative that G20 policymaking prioritise the fundamental reform of the IMF’s resources and governance. In December 2023, the IMF is scheduled to complete its 16th General Review of Quotas, an important process that is required by the IMF’s Articles of Agreement. This policy brief identifies the key challenges and shortcomings of the IMF’s quota-based resources, funding, and governance. It recommends that the G20 issue a set of guiding principles for the IMF’s 16th General Review of Quotas to ensure a stepwise increase in quota-based resources at the IMF and guide the continuation of IMF governance reform to increase the voice and representation of emerging market and developing economies.2 A renewed multilateral push for quota and governance reforms is essential to strengthening the IMF’s legitimacy as a quota-based anchor of the GFSN, and ensure its capacity to tackle the unprecedented risks to global financial stability.